Markets
How will this week’s US economic data impact crypto markets?
Crypto markets remained relatively inactive over the weekend, maintaining gains made last week following the approval of Ethereum spot exchange-traded funds in the United States.
This week will see the release of more economic data such as consumer confidence and gross domestic product indicators.
Economic calendar from May 27 to 31
Monday is Memorial Day in the United States, so markets will be closed and low volatility is expected for crypto assets.
Tuesday will see the release of consumer confidence data, which improved slightly in May from the previous month, with weekly jobless claims and better-than-expected manufacturing and services PMIs last week.
On Thursday, we will see the annualized GDP growth report for the first quarter of 2024, which provides an advanced estimate and overview of the health of the economy compared to the previous quarter.
However, the US Bureau of Economic Analysis estimates that the economy has slowed to annualized growth of 1.5%, slightly lower than initial estimates.
On Friday, the April Basic Personal Consumption Expenditure (PCE) report will be released, which shows the average amount consumers spend monthly. Policymakers at the Federal Reserve (FOMC) carefully consider this data as their primary indicator of inflation and will use it to estimate whether inflation is falling.
A related report on personal income and spending for April is also due Friday. This reflects the total value of personal income in America, in addition to the value of consumers’ purchases of all types of goods and services.
Because consumer spending is an important driver of economic growth, these reports can provide data on the overall economy and impact the Fed’s monetary policy decisions.
There will also be a total of ten speeches from Federal Reserve bosses this week.
Wholesale giant Costco, software company Salesforce and computer company HP are among the earnings reports to watch this week.
Crypto Market Outlook
Presidential candidate Donald Trump gave the crypto industry huge potential this weekend when he said he would support its future in America if elected.
However, that wasn’t enough to move the markets, which hovered around the $2.7 trillion market cap over the weekend.
The Asian trading session on Monday morning was muted. Bitcoin has declined slightly and is sitting just below $69,000 at the time of writing.
Ethereum prices fared better, gaining 4% on the day to $3,900 after ETF approvalswhile altcoins remained largely mixed.